World economic activity showed signs of revival in the first half of 1992 as some major economies slowly began to emerge from the cyclical downturns of 1990-91.

Long Synopsis:

World economic activity showed signs of revival in the first half of 1992 as some major economies slowly began to emerge from the cyclical downturns of 1990-91. During the next 12 months, world growth is expected to continue to recover at a moderate pace: following stagnation in 1991, world output is projected to expand by 1 percent in 1992 and by 3 percent in 1993, close to the average growth rate during the past two decades but somewhat less than experienced after the two previous--and more pronounced--recessions in 1974-75 and 1981-82 (Chart 1). Recent progress in reducing inflation is likely to continue in most countries. the growth of world trade is forecast to rise from 2¼percent in 1991 to 6¾percent in 1993.